TOKYO (AFX) - The Bank of Japan has leeway to adopt a looser monetary policy that would weaken the yen, said International Monetary Fund managing director Stanley Fischer. "Obviously neither Japan nor the rest of the world wants the yen to go crazy but there is room for a more expansionary monetary policy that would lower the value of the yen," Fischer said in Tokyo. "Expansionary monetary policy means providing more liquidity and that would almost certainly drive down the value of the yen." The BoJ has been under pressure to further loosen monetary policy to help prod the economy into recovery. It recently raised reserves in the current account to 5 trln yen from 4 trln in an attempt to increase liquidity.